It Is Useful to Think of Physical Capital in Terms

question 27

Multiple Choice

It is useful to think of physical capital in terms of a variable, .

• A) stock; because most equipment is solidly built.
• B) flow; because its usefulness lasts over a long period of time.
• C) flow; because it is usually put in place and maintained over a long period of time.
• D) stock; depending on the context.
• E) stock; because any flow of investment adds to the current capital stock.

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